FLORIDA BANKRUPTCY COURT ESTABLISHES “SAFE HARBOR” FLAT FEE FOR ATTORNEYS REPRESENTING SECURED CREDITORS IN CHAPTER 13 PROCEEDINGS
In June this year the Southern District of Florida adopted new guidelines which established a flat fee for attorneys representing secured creditors in Chapter 13 proceedings.[i] As long as the attorney provides proper notice, a flat rate of $525 is now deemed “reasonable compensation” for filing a proof of claim, reviewing a debtor’s Chapter 13 plan, monitoring the Chapter 13 proceedings, and raising necessary objections to protect the interests of the secured creditor. The new guideline took effect on June 6, 2023. Notably, the guideline does not prevent an attorney from seeking more than the $525 Safe Harbor fee; however, any such post-petition fee notices are “subject to objections based on reasonableness, necessity, and other grounds” as may be appropriate.
